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Tata Steel is eyeing Rs 1,000 crore turnover from sale of household solutions in the next three years. Growth will be primarily driven by branded doors ‘Pravesh’ - steel door with a wooden finish, according to the company. Apart from doors, the company has also introduced steel windows in select markets and customised wardrobes (on a pilot basis) targeting solutions for the home-segment.
According to Peeyush Gupta, VP – Steel (Marketing & Sales), ‘Pravesh’, which was launched in 2014 to provide value-added steel solutions to individual house builders in semi-urban and rural markets, is likely to clock sales turnover of Rs 200 crore by the end of this fiscal. The door business is estimated to be worth Rs 50,000 crore per annum and is dominated largely by local carpenters and vendors. The Pravesh doors, which are made from all weather-proof steel and claims to be break-free, termite-free and fire resistant, are priced in the range of Rs 22,000-26,000 a piece depending on the specifications and level of customisation.
“We are selling close to 15,000 doors a month; the potential is huge. Pravesh will turn out to be one of the largest contributors to the company’s branded product basket soon,” Gupta told the media on the sidelines of a company event.
Apart from dealer networks, the company is also looking to offer its solutions through high end property developers. “There are some high end developers particularly in cities like Nagpur, Trivandrum, Gujarat etc who are looking for our door solutions,” he said.
Tata Steel’s branded product basket, which comprises of Tata Tiscon – rebars for the urban market, Tata Shaktee - roofing sheets for rural homes and Tata Astrum, a hot rolled product catering to the SME segment, together account for Rs 15,000 crore turnover. “Branded steel sale for SME at around Rs 8,000-8,500 crore is the biggest contributor to the segment; followed by Tiscon at Rs 5,500 crore and Tata Shaktee at Rs 2,500 crore,” he said.
New offering
Plans are afoot to launch steel entrance gates and grills to complete the bouquet of offerings for the home segment. According to Gupta, the steel gates and grills would be completely customised and ‘unique’ making it difficult to be duplicated. “Steel gates and grills is one segment where it is important to get the product right; we have not launched yet but are looking at it,” he said.
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